EXHIBIT 10.2
SECOND-TIER LICENCE TO SUPPLY ELECTRICITY
- for -
Yorkshire Electricity Group plc
1
NOTE
The licenceholder is subject to the
environmental obligations set out in
Schedule 9 (Preservation of Amenity and
Fisheries) of the Electricity Act 1989
2
TABLE OF CONTENTS
Page
PART I: TERMS OF THE LICENCE
PART II: THE CONDITIONS
1. Interpretation. 2
2. Restriction on supply to certain premises. 16
3. Connection and use of system - requirement
to offer terms. 21
3A. Connection and use of system - functions
of the Director. 27
4. Compliance with the Grid Code. 29
5. Compliance with Distribution Codes. 30
6. Pooling and Settlement Agreement. 31
7. Licensee's system planning. 32
8. Generation security standard. 33
9. Security arrangements. 38
10. Health and safety of employees. 39
11. Provision of information to the Director. 40
12. Payment of fees. 42
SCHEDULE 1: Specified premises 44
SCHEDULE 2: Terms as to revocation 45
3
SECOND-TIER LICENCE TO SUPPLY ELECTRICITY
PART I: TERMS OF THE LICENCE
1. The Director General of Electricity Supply in accordance with a general
authority given by the Secretary of State under Sections 6(1) and (2) of
the Electricity Act 1989 (hereinafter referred to as "the Act") and in
exercise of the powers conferred by Section 6(2)(a), Section 6(6), and
Section 7 of the Act hereby licenses Yorkshire Electricity Group plc
(registered in England under number 2366995) to supply electricity to the
premises specified in Schedule 1 below during the period specified in
paragraph 3 below, subject to the Conditions set out in Part II below
(hereinafter referred to as the "Conditions") .
2. The Conditions are subject to modification or amendment in accordance with
their terms or with Sections 11, 14 or 15 of the Act. The licence is
further subject to the terms as o revocation specified in Schedule 2.
3. This licence shall come into force on 8th June 1990 and unless revoked in
accordance with the provisions of Schedule 2 shall continue until
determined by not less than 25 years' notice in writing given by the
Director General of Electricity Supply to the licensee, such notice not to
be served earlier than a date being 10 years after the licence comes into
force .
8th June 1990 Director General of Electricity Supply
4
PART II: THE CONDITIONS
Condition 1: Interpretation
1. Unless the contrary intention appears, words and expressions used in the
Conditions shall be construed as if they were in an Act of Parliament and
the Interpretation Act 1978 applied to them and references to an enactment
shall include any statutory modification or re-enactment thereof after the
date when this licence comes into force.
2. Any word or expression defined for the purposes of any provision of Part I
of the Act shall, unless the contrary intention appears, have the same
meaning when used in the Conditions.
3. In the Conditions unless the context otherwise requires:
"affiliate" in relation to the licensee or any
person means any holding company or
subsidiary of the licensee or such
person or any subsidiary of a
holding company of the licensee or
such person, in each case within
the meaning of Sections 736, 736A
and 736B of the Companies Act 1985
as substituted by Section 144 of
the Companies Act 1989 and if that
section is not in force at the date
of grant of this licence as if such
section were in force at such date.
5
"authorised" in relation to any business or
activity means authorised by
licence granted under Section 6 or
exemption granted under Section 5
of the Act.
"authorised electricity operator" means any person(other than the
licensee) who is authorised to
generate, transmit or supply
electricity and for the purposes of
Conditions 3 and 3A shall include
any person who has made application
to be so authorised which
application has not been refused
and any person transferring
electricity to or from England and
Wales across an interconnector or
who has made application for use of
interconnector which has not been
refused .
" connection and use means an agreement under which the
of system agreement" licensee agrees to provide to any
person a connection or connections
or a modification to an existing
connection to the licensee's system
and/or to any authorised
electricity operator, use of system
to transport
6
electricity on such system, as more
fully described in Condition 3.
"designated" in relation to any agreement or
arrangement or code or proposal
therefor means designated by the
Secretary of State or on his behalf
by such means as he may consider
appropriate whether for the
purposes of any Condition of this
licence or otherwise, but so that
an agreement or arrangement or code
or proposal therefor so designated
may at the discretion of the
Secretary of State cease to be
designated if amended or modified
in any material respect.
"Distribution Code" means in relation to any public
electricity supplier the
Distribution Code required to be
drawn up by such supplier and
approved by the Director as from
time to time revised with the
approval of the Director.
"distribution system " means the system consisting (wholly
or mainly) of electric lines owned
or operated by any
7
authorised electricity operator and
used for the distribution of
electricity from grid supply points
or generation sets or other entry
points to the point of delivery to
customers, and includes any remote
transmission assets operated by
such authorised electricity
operator and any electrical plant
and meters owned or operated by the
authorised electricity operator in
connection with the distribution of
electricity, but shall not include
any part of the transmission
system.
"equivalent megawatt" in circumstances where demand is
only measured in megavolt amperes
means megavolt amperes converted
into megawatts using for this
purpose a power factor of 0.9
megawatts per megavolt ampere or
such other factor as may with the
approval of the Director be taken
as being appropriate having regard
to electrical characteristics of
the supply, and cognate expressions
shall be construed accordingly.
"Fuel Security Code" means the document of that title
designated as such by the Secretary
of State as from time to time
amended.
8
"generation set" means any plant or apparatus for
the production of electricity and
shall where appropriate include a
generating station comprising more
than one generation set.
"Grid Code" means the Grid Code required to be
drawn up by the Transmission
Company and approved by the
Director as from time to time
revised with the approval of the
Director.
"grid supply point" means any point where electricity
is delivered to the licensee's
system or to the distribution
system of any authorised
electricity operator from the
transmission system.
"interconnectors" means the electric lines and
electrical plant and meters owned
or operated by the Transmission
Company solely for the transfer of
electricity to or from the
transmission system into or out of
England and Wales.
"licensee" means Yorkshire Electricity Group
plc and (where the context so
requires) shall include any
9
business in respect of which the
licensee is the successor company.
"licensee's system" means the electric lines owned or
operated by the licensee for the
transport of electricity from
generation sets or grid or bulk
supply points to the point of
delivery to customers, and includes
any electrical plant and meters
associated therewith.
" megawatt" or "MW" inc1udes an equivalent megawatt.
"Pooling and Settlement means the agreement of that title
Agreement" approved (or to be approved) by the
Secretary of State or by the
Director as from time to time
amended with the approval of the
Director (where so required
pursuant to its terms) and shall
where the context permits include
the Initial Settlement Agreement
approved (or to be approved) by the
Secretary of State (as from time to
time amended with the consent of
the Secretary of State).
10
"related undertaking" in relation to the licensee or any
person means any undertaking in
which the licensee or such person
has a participating interest as
defined by Section 260 of the
Companies Act 1985 as substituted
by Section 22 of the Companies Act
1989 and if that section is not in
force at the date of grant of this
licence as if such section were in
force at such date.
"remote transmission assets" means any electric lines,
electrical plant or meters owned by
the Transmission Company which (a)
are embedded in the licensee's
system or in the distribution
system of any authorised
electricity operator other than the
Transmission Company and are not
directly connected by lines or
plant owned by the Transmission
Company to a substation owned by
the Transmission Company and (b)
are by agreement between the
Transmission Company and the
licensee or such authorised
electricity operator operated under
the direction and control of the
licensee or such authorised
electricity operator.
11
"Retail Price Index" means the general index of retail
prices published by the Department
of Employment each month in respect
of all items or:
(a) if the index for any month in
any year shall not have been
published on or before the last day
of the third month after such
month, such index for such month or
months as the Director may after
consultation with the licensee
determine to be appropriate in the
circumstances; or
(b) if there is a material change
in the basis of the index, such
other index as the Director may
after consultation with the
licensee determine to be
appropriate in the circumstances.
"Transmission Company" means The National Grid Company plc
or any other holder for the time
being of a licence to transmit
electricity in England and Wales
under Section 6(1)(b) of the Act.
"transmission system" means the system consisting (wholly
or mainly) of high voltage electric
lines owned or
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operated by the Transmission
Company and used for the
transmission of electricity from
one generating station to a
sub-station or to another
generating station or between
substations or to any
interconnector, and includes any
electrical plant and meters owned
or operated by the Transmission
Company in connection with the
transmission of electricity but
shall not include any remote
transmission assets .
"undertaking" bears the meaning ascribed to that
expression by Section 259 of the
Companies Act 1985 as substituted
by Section 22 of the Companies Act
1989 and if that section is not in
force at the date of grant of this
licence as if such section were in
force at such date.
4. Any reference to a numbered Condition (with or without a suffix letter) or
Schedule is a reference to the Condition (with or without a suffix letter)
or Schedule bearing that number in this licence, and any reference to a
numbered paragraph (with or without a suffix letter) is a reference to the
paragraph (with or without a suffix letter) bearing that number in the
Condition or Schedule in
13
which the reference occurs.
5. In construing the Conditions, the heading or title of any Condition or
paragraph shall be disregarded.
6. Where, in the Conditions, any obligation of the licensee is required to be
performed within a specified time limit that obligation shall be deemed to
continue after that time limit if the licensee fails to comply with that
obligation within that time limit
7. The provisions of Section 109 of the Act shall apply for the purposes of
the delivery or service of any documents, directions or notices to be
delivered or served pursuant to any Condition, and directions issued by the
Director pursuant to any Condition shall be delivered or served as
aforesaid.
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Condition 2: Restriction on supply to certain premises
1. Save as provided in paragraphs 3 and 5 below the licensee shall not during
the franchise period supply electricity to any single premises at which the
relevant demand in megawatts is below the franchise limit.
2. In determining for the purposes of this Condition whether any single
premises falls within the franchise limit the licensee shall have regard to
the following bases of assessment:
(a) in respect of premises occupied by existing customers the relevant
demand in megawatts shall be calculated as an average of the maximum
monthly demands under normal operating conditions at such single
premises supplied by one or more authorised electricity operators
and/or the licensee in the three months of highest maximum demand as
recorded over the most recent twelve-month period in respect of which
figures are available; and
(b) in respect of premises occupied by a new customer seeking a supply
from the licensee the relevant demand in megawatts shall be calculated
by reference to the average maximum monthly demand which might
reasonably be expected in the three months of highest maximum demand
over a twelve-month period at premises having similar demand
characteristics to the premises occupied by such new customer.
3. Subject to paragraph 4 below, if at any time during the franchise period
the relevant demand in megawatts (calculated in accordance with paragraph 2
above) at any single premises to which a supply is given by the licensee in
accordance with the provisions of this Condition should fall below the
franchise limit the licensee may, notwithstanding such fact, continue to
supply such premises without being in breach of this Condition until such
time as:
(a) any contract existing between the licensee and the customer occupying
such premises is determined by effluxion of time or otherwise; or
15
(b) the supply arrangements between the licensee and the customer
occupying such premises shall for any other reason be terminated.
4. Save where the Director otherwise agrees, if (having regard to the basis of
assessment referred to in paragraph 2(b) above) the relevant demand in
megawatts of a customer who was a new customer at the time of commencement
of supply by the licensee should, in the first twelve-month period for
which figures are available, prove to be less than was reasonably expected
of such customer and to fall below the franchise limit, the licensee shall
cease to supply such customer.
5. Not withstanding paragraph 1, the licensee may supply electricity to single
premises at which the relevant demand in megawatts is below the franchise
limit where such single premises are specified for the purposes of this
licence by the Director with the prior approval of the Secretary of State.
6. For the purposes of paragraph 2(a), where the average calculated as there
provided, but ignoring for this purpose the reference to normal operating
conditions, was no more than 10 per cent. higher than the average
(calculated in the same manner) over the twelve-month period preceding the
twelve-month period referred to in paragraph 2(a), the maximum monthly
demands from which the average was derived shall be presumed to have
occurred under normal operating conditions.
7. Any dispute arising under the provisions of this Condition between the
licensee and any authorised electricity operator or any person requiring a
supply of electricity from the licensee may be referred to the Director and
the Director shall determine whether the premises in respect of which the
customer requires a supply to be given fall within the franchise limit.
8. In this Condition:
"existing customer" means any person occupying premises
to which a supply is being given by
the licensee or any other
authorised electricity operator,
which
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person (or any affiliate or related
undertaking of such person) and
premises have been supplied for a
clear period of at least 12 months
prior to the date on which
application for supply by the
licensee is made.
"franchise limit" means:
(a) during the four year period
from 31st March, 1990 to 30th
March, 1994 a relevant demand in
megawatts taken at any single
premises which does not exceed one
megawatt; and
(b) during the succeeding four year
period from 31st March,1994 to 30th
March, 1998 a relevant demand in
megawatts taken at any single
premises which does not exceed 0.1
megawatt in each case, having
regard to the bases of assessment
referred to in paragraph 2.
"franchise period" means the period of eight years
commencing on the date this licence
enters into force.
17
"new customer" means any person supplied or
applying for a supply to premises
other than an existing customer.
"single premises" includes in the case of sites or
buildings in multi-occupation, each
area in respect of which the supply
of electricity was as at 31st
December, 1989 or is or is to be
separately metered and the occupier
individually invoiced by the
licensee or any authorised
electricity operator .
18
Condition 3: Connection and use of system requirement to offer terms.
1. The licensee shall, subject to paragraphs 6 and 7 below, offer to enter
into an agreement with any authorised electricity operator who has made
application for use of system:
(a) to accept into the licensee's system at such entry point and in such
quantities as may be specified in the application, electricity to be
provided by or for the authorised electricity operator;
(b) to deliver electricity equal in quantity to that accepted into the
licensee's system (less only any distribution losses) from such exit
points on that system and in such quantities as may be specified in
the application to such person as the authorised electricity operator
may specify; and
(c) containing terms in accordance with paragraphs 3 and 4 below and such
other terms and conditions as may be appropriate for the purposes of
the agreement in the circumstances in which it is likely to be made.
2. The licensee shall, subject to paragraphs 6 and 7 below, offer terms for a
connection and use of system agreement in accordance with paragraph 1 above
as soon as practicable and in any event not more than the period specified
in paragraph 8 below after receipt by the licensee of an application from
the authorised electricity operator containing all such information as the
licensee may reasonably require for the purpose of formulating the terms of
his offer.
3. The licensee's offer made in accordance with paragraph 1 shall make
detailed provision regarding:
(a) the carrying out of works (if any) required for the construction or
modification of the entry point to connect the licensee s system to
the transmission system or to any distribution system or in connection
with the construction or modification of any exit points for the
delivery of the electricity to be distributed as specified in
19
the agreement, and for the obtaining of any consents necessary for
such purpose;
(b) the carrying out of works (if any) for the provision of electrical
plant or for the extension or reinforcement of the licensee s system
which are required, in the opinion of the licensee, to be undertaken
for the provision of use of system to the authorised electricity
operator and for the obtaining of any consents necessary for such
purpose;
(c) the installation of appropriate meters or other apparatus (if any)
required to enable the licensee to measure electricity being accepted
into the licensee's system at the specified entry point and leaving
such system at the specified exit points;
(d) the installation of such switchgear or other apparatus (if any) as may
be required for interrupting the use of system should there be a
failure by or for an authorised electricity operator to provide
electricity at its entry point on the licensee's system for delivery
to the person specified by the authorised electricity operator from
the exit points on such system;
(e) the date by which any works required so as to permit access to the
licensee's system (including for this purpose any works to extend or
reinforce them) shall be completed (time being of the essence unless
otherwise agreed by the authorised electricity operator); and
(f) the charges to be paid by the authorised electricity operator for the
provision of electrical plant, for connections to or modification of
connections to, or the extension or reinforcement of, the licensee's
system and for use of system shall, unless manifestly inappropriate,
be set in conformity with paragraph 4 below.
4. The charges referred to in paragraph 3 to be contained in every agreement
the subject of an offer by the licensee shall be such that:
(a) charges for the provision of electrical plant, connection charges,
charges for modification of connections or any charges for extension
or reinforcement of the licensee's system or for use of
20
system are set at a level which will enable the licensee to recover no
more than:
(i) the appropriate proportion (taking account of the factors
referred to in paragraph 5) of the costs directly or indirectly
incurred by the licensee; and
(ii) a reasonable rate of return on the capital represented by such
costs;
(b) charges for the installation of meters, switchgear or other apparatus
and for their maintenance shall not exceed the costs thereof and a
reasonable rate of return on the capital represented by such cost.
5. For the purpose of determining an appropriate proportion of the costs
directly or indirectly incurred in carrying out works, the licensee shall
have regard to:
(a) the benefit (if any) to be obtained or likely in the future to be
obtained by the licensee or any other authorised electricity operator
as a result of the carrying out of such works whether by virtue of the
provision of electrical plant, the reinforcement or extension of the
licensee's system, or the provision of additional entry or exit points
on such system or otherwise; and
(b) the ability or likely future ability of the licensee to recoup a
proportion of such costs from other authorised electricity operators
or other persons.
6. The licensee shall not be obliged pursuant to this Condition to offer to
enter into any agreement with an authorised electricity operator to make
connections or to provide use of system where, by reason of the capacity of
the licensee s system and the use made or reasonably expected to be made of
it, the licensee would be required to expand or reinforce the capacity of
the licensee's system.
7; The licensee shall not be obliged pursuant to this Condition to offer to
enter into any agreement with an authorised electricity operator if:
(a) to do so would be likely to involve the licensee:
21
(i) in breach of the Grid Code;
(ii) in breach of the Distribution Code;
(iii) in breach of the Electricity Supply Regulations 1988 or any
regulations made under Section 29 of the Act; or
(iv) in breach of any other enactment relating to safety or standards
applicable to the licensee's system; or
(b) the person making the application does not undertake to be bound,
insofar as applicable, by the terms of the Distribution Code or the
Grid Code from time to time in force; or
(c) the person making the application ceases to be an authorised
electricity operator.
8. For the purpose of paragraph 2, the period specified shall be:
(a) in the case of persons seeking use of system only, 28 days; and
(b) in the case of persons seeking connection, modification of an existing
connection or use of system in conjunction with connection, three
months.
9. The preceding paragraphs of this Condition shall apply mutatis mutandis in
the case of any person (not being an authorised electricity operator) who
wishes to be connected at an exit point on the licensee s system.
10. The licensee shall within 28 days following receipt of a request from any
person, give or send to such person such information in the possession of
the licensee as may be reasonably required by such person for the purpose
of completing paragraph 8 of Part 1 and paragraphs 2(v) and (vi) of Part 2
of Schedule 2 of The Electricity (Application for Licences and Extensions
of Licences) Regulations 1990 or such provisions to like effect contained
in any further regulations then in force made pursuant to Section 6(3), 60
and 64(1) of the Act.
22
Condition 3A: Connection and use of system - functions of the Director
1. If, after a period which appears to the Director to be reasonable for the
purpose, the licensee has failed to enter into an agreement with an
authorised electricity operator (or in the case of connection at any exit
point, any person) entitled or claiming to be entitled thereto pursuant to
an application in accordance with Condition 3, the Director may pursuant to
Section 7(3)(c) of the Act, on the application of such authorised
electricity operator or person or the licensee, settle any terms of the
agreement in dispute between the licensee and the authorised electricity
operator or person in such manner as appears to the Director to be
reasonable having (in so far as relevant) regard, in particular, to the
following considerations:
(a) that the authorised electricity operator or person should pay to the
licensee the whole or an appropriate proportion (as determined in
accordance with paragraph 5 of Condition 3) of the costs directly or
indirectly incurred by the licensee in the carrying out of any works
or in providing or doing any other thing under the agreement in
question together with a reasonable rate of return on the capital
represented by such costs calculated in accordance with the principles
set out in paragraph 4 of Condition 3;
(b) that the performance by the licensee of its obligations under the
agreement should not cause it to be in breach of any other Condition
of this licence;
(c) that any methods by which the licensee's system is connected to the
transmission system or to any distribution system accords with good
engineering principles and practices; and
(d) that the terms and conditions of agreements entered into by the
licensee pursuant to an application in accordance with Condition 3
should be, so far as circumstances allow, as similar in substance and
form as is practicable.
2. If the authorised electricity operator or person (as the case may be)
wishes to proceed on the basis of the agreement as settled by the Director,
the licensee shall forthwith enter into and implement such agreement in
accordance with its terms.
23
Condition 4: Compliance with the Grid Code
1. The licensee shall comply with the provisions of the Grid Code in so far as
applicable to it.
2. The Director may (following consultation with the Transmission Company)
issue directions relieving the licensee of its obligation under paragraph 1
in respect of such parts of the Grid Code and to such extent as may be
specified in those directions.
24
Condition 5: Compliance with Distribution Codes
1. The licensee shall comply with the provisions of the Distribution Code of
any public electricity supplier in so far as applicable to it.
2. The Director may (following consultation with any public electricity
supplier directly affected thereby) issue directions relieving the licensee
of its obligation under paragraph 1 in respect of such parts of the
Distribution Code of any public electricity supplier and to such extent as
may be specified in those directions.
25
Condition 6: Pooling and Settlement Agreement
1. The licensee shall be party to and, within 3 months after the date on which
this licence comes into force (or such longer period as may be specified by
the Director in directions issued for the purposes of this Condition),
shall become a pool member under and shall in either case comply with the
provisions of, the Pooling and Settlement Agreement insofar as the same
shall apply to it in its capacity as a private electricity supplier.
2. Paragraph 1 shall not apply for so long as the aggregate amounts to be
supplied by the licensee and any affiliate or related undertaking of the
licensee in its or their capacity as a public or private electricity
supplier do not exceed 500 kW.
26
Condition 7: Licensee's system planning
1. The licensee shall plan and develop the licensee's system in accordance
with a standard not less than that set out in Engineering Recommendation
P.2/5 (October 1978 revision) of the Electricity Council Chief Engineers'
Conference in so far as applicable to it or such other standard of planning
as the licensee may, following consultation with the Transmission Company
and any authorised electricity operator liable to be materially affected
thereby and with the approval of the Director, adopt from time to time .
2. The Director may (following consultation with the licensee and, where
appropriate, with the Transmission Company and any authorised electricity
operator liable to be materially affected thereby) issue directions
relieving the licensee of its obligation under paragraph 1 in respect of
such parts of the licensee's system and to such extent as may be specified
in the directions.
27
Condition 8: Generation security standard
1. The licensee shall make arrangements sufficient to meet the generation
security standard.
2. The duty imposed by paragraph 1 shall be discharged either by the
licensee's complying with the provisions of paragraph 3 below or by the
making by the licensee of such other arrangements as may have been
previously approved in writing for the purpose by the Director.
3. The licensee may discharge the duty imposed by paragraph 1 by:
(a) for so long as the relevant condition is met, purchasing as a pool
member under the terms of the Pooling and Settlement Agreement
quantities of electricity which are at all times sufficient to meet
the demands of all qualifying customers of the licensee; and
(b) for so long as the relevant condition is met, and save by reason of
planned maintenance undertaken on the licensee s system or in
circumstances of force majeure affecting either the licensee s system
or the quantities of electricity delivered into that system, not:
(i) making voltage reductions outside statutory limits; or
(ii) interrupting or reducing supplies to any qualifying customer
otherwise than as instructed pursuant to the Grid Code by the
Transmission Company or in accordance with any applicable
Distribution Code.
4. The relevant condition referred to in paragraph 3 is that there should at
any relevant time be electricity available to be purchased under the terms
of the Pooling and Settlement Agreement at a price less than the ceiling
price.
5. The licensee shall upon request by the Director provide to the Director
such information as the Director may require for the purpose of monitoring
compliance with this Condition and to enable the Director (having regard to
his statutory duties) to review the operation of the generation security
standard.
28
6. The provisions of this Condition are without prejudice to the duties of the
licensee under the Electricity Supply Regulations 1988.
7. In this Condition:
"ceiling price" means such price as would be equal
to the Pool Selling Price in
circumstances where the
corresponding Pool Purchase Price
was an amount equal to the Value of
Lost Load.
"generation security means such standard of generation
standard" security as will ensure that:
(a) the supply of electricity to
qualifying customers will not be
discontinued in more than 9 years
in any 100 years; and
(b) the voltage or frequency of
electricity supplied to qualifying
customers will not be reduced below
usual operational limits in more
than 30 years in any 100 years by
reason of insufficiency of
electricity generation available
for the purposes of supply by the
licensee to its qualifying
customers at times of annual system
peak demand.
29
"Pool Purchase Price" shall each have the meaning from
and "Pool time to Selling to time ascribed to
Price" them in Schedule 9 to the Pooling
and Settlement Agreement.
"qualifying customer" means any purchaser from the
licensee but shall exclude
(a) a contract purchaser under an
interruptible contract or a
contract containing load management
terms to the extent that supplies
to that purchaser may be
interrupted or reduced in
accordance with the terms of that
contract; and
(b) a customer on special tariff
terms which restrict supplies to
particular time periods to the
extent that supplies to that
customer may be interrupted or
reduced in accordance with such
tariff .
"Value of Lost Load" means in respect of the first
financial year, the sum of(pound)2
per kWh and, in respect of each
succeeding financial year, the sum
which corresponds to(pound)2 per
kWh as adjusted to reflect
30
the percentage change in the Retail
Price Index between the index
published or determined in respect
to the December prior to the start
of that financial year and the
index published or determined for
December 1989.
31
Condition 9: Security arrangements
1. The licensee shall comply with the provisions of the Fuel Security Code and
such provisions shall have effect as if they were set out in this licence.
32
Condition 10: Health and safety of employees
1. It shall be the duty of the licensee to act together with other licensees
to consult with appropriate representatives of the employees for the
purpose of establishing and maintaining an appropriate machinery or forum
for the joint consideration of matters of mutual concern in respect of the
health and safety of persons employed by those licensees.
33
Condition 11: Provision of information to the Director
1. Subject to paragraphs 2 and 3, the licensee shall furnish to the Director,
in such manner and at such times as the Director may require, such
information and shall procure and furnish to him such reports, as the
Director may consider necessary in the light of the Conditions or as he may
require for the purpose of performing:
(a) the functions assigned to him by or under the Act; and
(b) any functions transferred to him under the Act.
2. The licensee may not be required by the Director to furnish him under this
Condition with information for the purpose of the exercise of his functions
under Section 48 of the Act.
3. The licensee may not be required by the Director to furnish him under this
Condition with any information required in relation to an enforcement
matter which the licensee could not be compelled to produce or give under
Section 28(3) of the Act.
4. The power of the Director to call for information under paragraph 1 is in
addition to the power of the Director to call for information under or
pursuant to any other Conditions.
5. In paragraphs 1 to 4, "information" shall include any documents, accounts,
estimates, returns or reports (whether or not prepared specifically at the
request of the Director) of any description specified by the Director.
6. The licensee shall, if so requested by the Director, give reasoned comments
on the accuracy and text of any information and advice (so far as relating
to the supply of electricity authorised by this licence) which the Director
proposes to publish pursuant to Section 48 of the Act.
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Condition 12: Payment of fees
1. The licensee shall, at the times stated hereunder, pay to the Secretary of
State fees of the amount specified in, or determined under, the following
paragraphs of this Condition.
2. Within 30 days after the grant of this licence but, in any event, before
8th July, 1990, the licensee shall pay to the Director an initial fee of
(pound)250.
3. In respect of the year beginning on 1st April in 1991 and in each
subsequent year, the licensee shall pay to the Director a fee which is the
aggregate of the following amounts:
(a) an amount which is a proportion as determined by the Director of the
amount estimated by the Director, according to a method which has
previously been disclosed in writing to the licensee, as likely to be
his costs during the coming year in the exercise of his general
functions under the Act in relation to the holders of licences granted
by the Secretary of State or the Director under Section 6(1) and 6(2)
of the Act;
(b) an amount which is a proportion as determined by the Director of the
amount estimated by the Director (in consultation with the Monopolies
Commission) as having been incurred in the calendar year immediately
preceding the 1st April in question by the Monopolies Commission in
connection with references made to it under Section 12 of the Act with
respect to this licence or any other licence issued under Section 6(2)
of the Act; and
(c) the difference (being a positive or a negative amount), if any,
between:
(i) the amount of the fee paid by the licensee in respect of the year
immediately preceding the 1st April in question; and
(ii) the amount which that fee would have been in respect of that year
had the amount comprised therein under sub-paragraph (a) above
(or, where that period commenced on 8th June, 1990 the amount
attributable to the matters referred to in that sub-paragraph)
been
35
calculated by reference to the total costs of the Director and
the proportion thereof actually attributable to the licensee
(such total costs being apportioned as determined by the Director
according to a method previously disclosed in writing to the
licensee)
and the fee shall be paid by the licensee to the Director within one month of
the Director giving notice to the licensee of its amount if that notice is given
within six months of the beginning of the year in respect of which the fee is
payable.
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SCHEDULE 1
Specified premises
All non-domestic premises having a maximum demand over 1MW in the authorised
areas as at 31 March 1990 of the following public electricity suppliers:
East Midlands Electricity plc
Eastern Electricity plc
London Electricity plc
MANWEB plc
Midlands Electricity plc
Northern Electricity plc
NORWEB plc
SEEBOARD plc
Southern Electric plc
South Wales Electricity plc
South Western Electricity plc
proceedings relating to any such application are finally determined;
(d) if the licensee fails to comply with any order made by the Secretary
of State under Section 56, 73, 74 or 89 of the Fair Trading Act 1973
or under Section 10(2)(a) of the Competition Act 1980;
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(e) if the licensee:
(i) has not within 5 years after the date of this licence commenced
the supply of electricity to any of the premises specified in
Schedule 1 above; or
(ii) has ceased to supply electricity to all those premises for a
period of 5 years;
(f) if the licensee:
(i) is unable to pay its debts (within the meaning of Section 123(1)
or (2) of the Insolvency Act 1986, but subject to paragraph 2 of
this Schedule) or has any voluntary arrangement proposed in
relation to it under Section 1 of that Act or enters into any
scheme of arrangement (other than for the purpose of
reconstruction or amalgamation upon terms and within such period
as may previously have been approved in writing by the Director);
(ii) has a receiver (which expression shall include an administrative
receiver within the meaning of Section 251 of the Insolvency Act
1986) of the whole or any
3. The provisions of Section 109 of the Act shall apply for the purposes of
the service of any notice under this Schedule.
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